Australia's largest datacentre operator, NextDC, has faced a major setback in plans to double the size of its west Melbourne facility. The expansion requires more electricity, and the planned upgrade by Jemena to taller concrete poles has been delayed. Delays stem from safety concerns, limited site access due to community and stakeholder opposition, and the local council not approving 22-metre poles. NextDC's share price fell from more than $9 to $5.69 last week. The companies are now considering alternative pole locations through industrial zones or underground connections.
NEXTDC shares fell 42 per cent in a single day after the company said delays in getting power to its inner-west Melbourne data centre expansion would cut its future earnings by a third. The delays followed residents in Yarraville blocking power company Jemena's crews from working in Sanderson Street, forcing them to abandon the holes they had dug. Separately, the planned listing of AI data centre company Firmus, valued at about $44 billion, fell apart after large investors refused to pay $11 a share.
NextDC has delayed the expansion of its M3 site in West Footscray, Melbourne, to the 2027/2028 financial year. Electricity provider Jemena has paused upgrades to power poles after safety concerns, site access problems and community opposition. The company's share price fell from over $9 to $5.69 after trading resumed. NextDC cut its net revenue guidance to between $475m and $500m. Residents remain opposed to the project and plan to keep campaigning.
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NextDC has cut its revenue and profit forecasts for the current financial year after delays to power network upgrades at its West Footscray data centre in Melbourne. Its share price fell 40 per cent after the announcement to the stock exchange. The company said energy supplier Jemena had suspended parts of the network works needed for a future increase in grid supply. Local residents, who have opposed the centre over diesel and noise concerns and the installation of tall power poles, have called for compensation and remediation.
National Australia Bank has announced plans to reduce its workforce by as many as 2,500 positions, equal to roughly 6 per cent of its staff, with the cuts due to take effect by mid-2027. The announcement weighed on the bank's share price during the session. Separately, trading in NextDC, a local data centre operator, has been halted pending an announcement that appears connected to a disagreement over power poles in a suburban Melbourne street. The day's business coverage includes further market commentary from specialist reporters.
